Canada to Further Tighten Study Permit Limits and Restructure Work Permit Eligibility for International Students

In response to growing concerns about population growth and labor market alignment, the Canadian government is set to implement significant changes to its immigration and study permit policies. Aiming to manage the influx of international students and address labor shortages, Immigration Minister Marc Miller announced key reforms that will take effect starting in 2025. These changes are expected to better balance the country’s economic needs with its immigration objectives.

Reduced Study Permit Intake

One of the major shifts is a 10 per cent reduction in study permits for international students. The government plans to lower the annual cap from 485,000 in 2024 to 437,000 in 2025, maintaining this level until at least 2026. This decision follows mounting public pressure to address Canada’s housing crisis and rising cost of living, which have been exacerbated by rapid population growth.

Minister Miller emphasized the importance of adapting immigration policies to meet the country’s evolving needs. “We are taking action to strengthen our temporary residence programs and roll out a more comprehensive immigration plan to meet the demands of today’s changing landscape,” Miller said at a recent press conference. “Our immigration system must preserve its integrity, be well-managed, and sustainable.”

Changes to Post-Graduation Work Permit Program

In addition to reducing study permit numbers, the government plans to modify the post-graduation work permit (PGWP) program to ensure it aligns more closely with labor market demands. Currently, many international students are eligible for work permits upon graduation, allowing them to remain in Canada and contribute to the workforce. However, the new rules will introduce stricter criteria for eligibility.

These changes are expected to address concerns about temporary residents taking positions that could be filled by Canadian citizens and permanent residents. Employment Minister Randy Boissonnault highlighted this goal, stating, “Right now, we know that there are more Canadians qualified to fill open positions. The changes we are making today will prioritize Canadian workers and ensure Canadians can trust the program is meeting the needs of our economy.”

Addressing the Population Surge

Earlier this year, Canada’s population surpassed 41 million, prompting calls for stricter immigration controls. In response, the government has already reduced the number of new study permit applications by 35 per cent in 2023. The latest measures aim to bring the percentage of temporary residents down from 6.1 per cent of the population to 5 per cent over the next three years.

The new policies also introduce more targeted restrictions on work permits for the spouses of international students. Only spouses of those enrolled in master’s degree programs lasting at least 16 months will be eligible for work permits. Additionally, work permits will only be issued to spouses of foreign workers who are employed in management or professional roles or in industries facing labor shortages.

The Canadian government’s decision to reduce study permits and tighten work permit eligibility reflects a broader effort to maintain the integrity of the immigration system while addressing domestic concerns. As the country grapples with housing shortages and strained public services, these changes aim to ensure that immigration policies are sustainable and in line with Canada’s long-term economic goals.

By limiting the number of international students and refining work permit criteria, the government hopes to create a more balanced immigration system that benefits both newcomers and Canadian citizens alike.